{"id":8278,"date":"2024-03-07T11:30:00","date_gmt":"2024-03-07T11:30:00","guid":{"rendered":"https:\/\/thezakariagroup.com\/the-benefits-of-downsizing-when-you-retire\/"},"modified":"2024-03-07T11:30:00","modified_gmt":"2024-03-07T11:30:00","slug":"the-benefits-of-downsizing-when-you-retire","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/the-benefits-of-downsizing-when-you-retire\/","title":{"rendered":"The Benefits of Downsizing When You Retire"},"content":{"rendered":"
\"The<\/p>\n

If you\u2019re taking a look at your expenses as you retire, saving money where you can has a lot of appeal. One long-standing, popular way to do that is by downsizing<\/a> to a smaller home.<\/p>\n

When you think about cutting down on your spending, odds are you think of frequent purchases, like groceries and other goods. But when you downsize your house, you often end up downsizing the bills that come with it, like your mortgage payment, energy costs, and maintenance requirements. Realtor.com<\/em> shares<\/a>:<\/p>\n

\u201cA smaller home typically means lower bills and less upkeep. Then there\u2019s the potential windfall that comes from selling your larger home and buying something smaller.\u201d<\/em><\/p><\/blockquote>\n

That windfall is thanks to your home equity<\/a>. If you\u2019ve been in your house for a while, odds are you\u2019ve built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Daniel Hunt, CFA at Morgan Stanley<\/em>, explains<\/a>:<\/p>\n

\u201c<\/em>Home equity can be a significant source of wealth for retirees, often representing a large portion of their net worth<\/em><\/strong>. . . . Retirement planning can be complex, but your home equity shouldn’t be overlooked.\u201d<\/em><\/p><\/blockquote>\n

And when you\u2019re ready to use that equity to fuel your next move<\/a>, your real estate agent will be your guide through every step of the process<\/a>. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today\u2019s mortgage rate.<\/p>\n

What This Means for You<\/strong><\/h4>\n

If you\u2019re thinking about downsizing, ask yourself these questions:<\/p>\n